Why has the investment-cash flow sensitivity declined so sharply? Rising R&D and equity market developments

By James R. Brown, Bruce C. Petersen. 2009

444 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/e85db5dfd94f8b6ad8a14daf11c3e306b3edd282

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Citations in the corpus

Family Business Growth Around the World (2020, methodology): “Following the prior studies (Huynh & Petrunia, 2010), Financial leverage is included as a measure of debt, and Cash flow reflects internal finances (Brown & Petersen, 2009).”
Corporate investment efficiency: The role of financial development in firms with financing constraints and agency issues in OECD non-financial firms (2019, background): “Brown and Petersen (2009) find that firms, including the smaller ones who are most likely to be financially constrained, are able to raise funds with less friction through equity financing in developed financial markets. Levine (2005) argues that large number of financial intermediaries operate in c”
The demand and supply of external finance for innovative firms (2013, unknown): “…at a premium, and this premium can subject R&D investments to especially severe financial constraints, as is the case in studies that estimate the sensitivity of R&D investments to cash flow (Hall, 1992; Brown and Petersen, 2009, 2011; Bond et al., 2003, 2010; Mulkay et al., 2001; Harhoff, 1998).”
Internal financial constraints and firm productivity in China: Do liquidity and export behavior make a difference? (2013, unknown): “vjt captures industry-specific business cycle effects, and is taken into account by including industry and time dummies interacted (Brown et al., 2009; Brown and Petersen, 2009; Guariglia et al., 2011).”
Corporate governance and investment-cash flow sensitivity: Evidence from emerging markets (2013, background): “…of firm-level corporate governance on corporate investment expenditures in the U.S. and other developed countries (e.g., Almeida and Campello, 2007; Brown and Petersen, 2009; Cho, 1998; Degryse and de Jong, 2006; Goergen and Renneboog, 2001; Hadlock, 1998; Hovakimian, 2009; Kathuria and Mueller,…”
The Financing of R&D and Innovation (2009, unknown): “A novel finding in this paper and a companion paper by J. Brown and Petersen (2009) is the increased importance of public equity issuance in financing R&D in the United States, which doubtless reflects a shift in expectations on the part of investors during this period.”
The Impact of Off-Balance-Sheet Activities on Banks Returns: An Application of the ARCH-M to Canadian Data (2010, background): “2 On this, see also the recent evidence in Brown and Petersen (2009).”
Financial Flexibility, Investment Ability, and Firm Value: Evidence from Firms with Spare Debt Capacity (2010, methodology): “To test our predictions, we employ a q-model of investment in which capital expenditures are regressed on Tobin’s q and cash flow (Cleary, 1999; Alti, 2003; Brown and Petersen, 2009).”
Institutional determinants of R&D investment: Evidence from emerging markets (2019, result): “This study has found a negative relation between current year cash flow and R&D investment which is different from some of the earlier studies such as Hall (1992), Himmelberg and Petersen (1994), Brown and Petersen (2009), Brown et al.”
R&D and economic growth in a cash-in-advance economy (2014, unknown): “Substituting (8) into (6), we derive the aggregate production function given by”
Do Financing Constraints Matter for R&D? (2012, unknown): “…and Himmelberg and Petersen (1994) report a strong positive relation between R&D and cash flow in U.S. manufacturing firms, and recent studies by Brown et al. (2009) and Brown and Petersen (2009) find a strong link between R&D and both internal and external equity finance for young publicly…”